Green Circle continues to sellers and friends to talk about the Japanese consumption tax, this issue of the theme mainly involves the following aspects:
1、JCT declaration details: When should I make a declaration? If there is a tax refund after filing, can I get it back? How to calculate the amount of my return, is it 10% of sales?
2、Customs clearance details: before and in the future with the freight forwarder customs clearance can not be deducted how to do? After registering JCT, do I need to reverse all the operations?
3. Historical Tax Recovery of Consumption Tax in Japan
4. JCT Tax Compliance Costs: Customs Clearance and Registration Returns
"If there is a refund of Japanese consumption tax, can this tax be deducted from subsequent taxes? Or can it be withdrawn?"
In principle, they are eligible for tax rebates.
However, if the customer is registered as a JCT (i.e., no back taxes) as a tax-exempt business owner, and has not filed any historical tax returns and applies for a tax refund, it will generally result in a tax audit.
Overseas corporations registered JCT, you need to appoint a Japanese resident / enterprise as a tax administrator, once the tax administrator under the name of the existence of a customer audit is proved to be non-compliant, under the name of the other customers to be audited the risk is very high, so do not recommend that overseas corporations to offset the input JCT is a negative amount to apply for a refund to extract, you can save for the next period of time to pay the tax.
"Are the sales in the base period tax-inclusive sales?
In the case of a tax-exempt business (a business that is not required to pay back taxes), the sales for the base period are tax-inclusive sales;
In the case of a taxable business (a business that is subject to back taxes), base period sales are non-taxable sales.
"Is the tax period from January 1 to December 31 of the natural year?"
The taxable period of JCT is referenced to the fiscal year of the overseas company.
For Mainland China companies, the general corporate accounting year is from January 1st to December 31st;
For Hong Kong companies in China, there are corporate accounting years from July 1 to June 30 and April 1 to March 31 for some companies.
Therefore, the tax period in Japan is not always based on the natural year, but varies according to the accounting year of the overseas enterprises.
"When should I file a return if I am registered with JCT?"
In principle, the tax period for Japanese consumption tax is once a year, and the deadline for filing tax returns is within two months of the end of the tax period. However, from the following year, an interim reporting and tax payment system is implemented based on the sales tax amount of the previous tax period:
"If I register with JCT, will my historical taxes be recovered?"
Whether you are a Japanese or overseas business, if your historical one-year/half-year sales exceed the tax-exempt threshold (10 million yen), you will be required to register, file a return, and pay consumption tax beginning in the fiscal year following two years/one year later.
At present, to address the historical tax issues of sellers, for enterprises that intend to comply with the regulations in the long run, sellers can choose to proactively disclose the reporting of historical sales, and choose to make up for the tax during the filing window or proactively cooperate in making up for the tax if the IRD requires them to do so.
In addition, the current situation is that the Japan Revenue Agency (JRA) will not take the initiative to carry out tax inspections for the time being, in view of the fact that the compliant mode of customs clearance for overseas enterprises in the import clearance section is to use the compliant Reverse Transit Clearance (RTC).
However, since overseas enterprises generally used to use tax chartered customs clearance, fixed tax reverse accounting, and so on, instead of using the company head of the overseas enterprise and entrusting the ACP to comply with reverse accounting customs clearance, there will be a certain amount of tax risk in the long run in terms of tax investigation and back-taxation.
However, it is worth mentioning that the general tax investigation in Japan is only for 3 years (individual tax authorities may investigate for 5 years if they consider that there is a major suspicion), so it is possible that the early ones will not be pursued if they have filed for more than 3 years consecutively.
"Customs clearance details: What should I do if I have used a freight forwarder for customs clearance in the past or in the future? Do I need to reverse the whole process after registering JCT?"
In Japan, there are two types of tax returns: simplified tax returns and principle tax returns:
(1) For overseas enterprises under simplified tax regime, the current practice of using freight forwarders for customs clearance can remain unchanged.
Because this filing method does not require the provision of JCT input credit invoices, the retail industry can directly offset the sales tax amount of 80%, i.e., according to the taxable sales amount of 2% to file tax returns. It is recommended that eligible sellers can choose this filing method in the first year.
(2) For the principle of taxation of overseas enterprises, the sale of products in line with the commission of ACP agent customs clearance, the need to designate the corresponding Japanese customs district before shipment of the ACP, with the seller's company name and legal person號合 reverse customs clearance, to get compliant with the customs clearance of the JCT invoices, as well as amazon's warehousing and tailing delivery fees, commissions and other JCT-containing input invoices, you can apply for the sales of the JCT Credit.
The above is the consumption tax related content of this issue. In the next section, Green Circle will introduce the application requirements of Simplified Taxation and the matters to be noted in the calculation and declaration, please keep your attention on Green Circle public number.
Green Circle Japan JCT registration time leading industry, the fastest 2 weeks under the legal person number, can provide professional and personalized tax advice for Japanese sellers and friends, to answer your questions, and ensure that your tax compliance.
If you have any related needs, or have any questions about Japanese tax, please feel free to ask Ms. Green Circle on WeChat~.
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